EX-99.2 4 g80541exv99w2.htm EXCERPTS FROM GOODRICH CORPORATION WRITTEN MATLS exv99w2
 

EXHIBIT 99.2

Excerpts from Goodrich Corporation written materials dated February 7, 2003 captioned “Fourth Quarter and Full Year 2002 Performance Review”.

New Segment Organization Structure
Expected 2003 Sales – continuing operations only

         
Airframe Systems
 Approx. $ 1.8B  
Engine Systems
 Approx. $ 1.5B  
Electronic Systems
 Approx. $ 1.1B  

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Expectations for Goodrich 2003 Sales

                   
      Full Year 2002        
      Goodrich   Avg. Expected
      Mix   2003 Growth
     
 
Boeing & Airbus OE Production
     25 %   (15 - 20%)
Commercial A/C Aftermarket
     25 %   Flat, up slightly
Regional, Business & GA OE & Aftermarket
     13 %   Flat
Military and Space — OE & Aftermarket
     26 %   5 - 10%
Heavy Airframe Maintenance
     4 %   (5%)
IGT & Other
     7 %   (0 – 5%)
         
 
Expected Organic Growth
           Relatively Unchanged
Asset Dispositions
           (2 – 4%)
         
Goodrich Total – 2003 Sales Expectations
           $4.4 – 4.5B

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2003 EPS Guidance

EPS from Continuing Operations – Excluding Special Items

           
2002 EPS
   $ 2.31  
Range of Change:
        
 
Segment OI Growth
     +$.45 – $.55  
 
Pension Expense
     ($.25)  
 
Corp. & Other
     ($.10) – ($.15)  
 
Interest Expense
     ($.33) – ($.38)  
 
Noveon PIK Note Income
     ($.02)  
 
Divested Businesses
     ($.05) – ($.10)  
 
New Equity Issuance
     ($.16) – ($.23)  
2003E EPS
     $1.70 - $1.85  

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Free Cash Flow – 2002 Results and 2003 Expectations

                           
      (Dollars in Millions)
                      Forecast
      4Q 2002   2002   2003
     
 
 
Net Income – excluding special items
   $ 72     $ 244     $ 200 - 220  
Depreciation and amortization
   $ 63     $ 184     $ 230 - 240  
Capital Expenditures
   $ (51 )   $ (107 )   $ (150 – 170 )
All Other
   $ 59     $ 166     $ (20 – 40 )
 
Free Cash Flow
   $ 143     $ 487     $ 250 - 280  
Net Income Conversion
     199 %     200 %     115% - 130 %
 
Other Items
                        
Special Items (Restructuring Cash)
   $ (11 )   $ (55 )   $ (35 – 45 )
Common Dividends
   $ (20 )   $ (97 )   $ (95 )
Distribution on Trust Preferred Securities
   $ (3 )   $ (11 )   $ (11 )

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2003 Outlook — Continuing Operations

                                   
                      2001 to        
                      2002        
      Actual   Actual   %   2003
      2001   2002   Change   Outlook
     
 
 
 
Sales
   $ 4.2 B   $ 3.9 B     (7 %)   Plus 13% to 15%
 
Segment Operating Margins*
     15.4 %     13.6 %     (12 %)   Decline Slightly
Diluted E.P.S. – Continuing operations, excl. special items and goodwill amortization
   $ 3.08     $ 2.31       (25 %)   $ 1.70 – $1.85  
Free Cash Flow – excl. special items
   $ 223 M   $ 487 M     +118 %   $ 250 – 280M  

*   Results from continuing operations, excluding special items

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